General Motors: Manufacturing 30,000 respirators to trap and combat the Corona epidemic

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Federal government officials announced that GM will manufacture 30,000 respirators to be added to the national stock in the United States for 489.4 million dollars to help tackle the Corona epidemic.

According to the CNBC report, the US Department of Health said the contract was the first for respirators under the Defense Production Act which Trump activated last month.

A spokesman for General Motors said that Detroit automaker would produce and deliver respirators to the government by the end of August and hand over 6,132 devices by June 1 and production is expected to start next week.

The cost is about half the price of 80,000 respirators for a billion dollars, and GM confirmed on Wednesday that it was not benefiting from the contract.

General Motors shares rose 1.8% in the pre-sale dealings, and the stock fell 41.8% this year.

According to the conditions stated in the announcement, each ventilator will cost $ 16,000, well below the market price of $ 50,000 and the price mentioned by New York Governor Como at a press conference on March 30.

General Motors said in a statement, it is still “full-time to work with the US administration to ensure that the country’s needs are met during this global epidemic.”

It is noteworthy that Trump issued an order to General Motors to produce devices under the Defense Production Act on March 27, hours after the automaker announced a partnership with Ventec Life Systems Washington-based to build critical-care fans at a GM component factory in Indiana.

GM’s announcement came after Trump criticized the car company, GM’s CEO and President Mary Barra for her desire to get a higher price for the production of life-saving devices.



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